20 Pages

problem definition and prob-

Family economic decision-making processes (FDPE). The economic decision processes of families also begin with the goals as known. The challenge is to then prioritize the group goals, the individual goals, and the group vs. individual goals, obtain information about various courses of action, and think about resource possibilities and consequences of actions before making a decision about resource allocations. McDonald and Cornille (1988) referred to this process as policy formation because it involved the process of ranking. Value priorities are stable but not static so that changes and new commitments will require reprioritizing goals. The policy formation processes in families vary from “ systematic and explicit to inadvertent and implicit” (McDonald & Comille, 1988, p. 252) and hopefully result in choosing courses of action (Hill et al. 1970) and the development of family rules for prioritizing shared values and sharing scarce family resources. The economic decision process results in some kind of agreement about how to balance conflicting demands and preferences and how to structure the interdependence of their situation and shared resources.